Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. abc company recently reported $2m of sales, $0.5m

ABC company recently reported $2M of sales, $0.5M of operating costs other than depreciation, and...

60.2K

Verified Solution

Question

Finance

image
ABC company recently reported $2M of sales, $0.5M of operating costs other than depreciation, and $0.1M of depreciation. The company had $3,000 of outstanding bonds that carry a 10% interest rate, and its federal-plus-state income tax rate was 20%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to spend $0.15M to buy new fixed assets and to invest $0.2M in net operating working capital. What was the firm's free cash flow? $0.87M$0.90M$0.95M$0.99M

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

#2a.Three point charges are located in the x-y plane. q1 = -42.6 nC at (0.00, +3.60...

Physics
Q

A baseband signal s(t) = 10Cos(3000*pi*t + 30) V, is wideband fm modulated (Z(t)) with carrier...

Electrical Engineering
Q

When electrical leakage occurs in a circuit, which of the following protective device will NOT Trip? A....

Electrical Engineering
Q

Are you a staunch proponent of whistleblowing? Why or why not. Justify your reasoning with examples

General Management
Q

In this unit you will be completing the first two sections of a Strategic Marketing Plan....

General Management
Q

A rod is rotating with a constant angular velocity w about point O its cnetre...

Physics
Q

Use the quadratic formula to solve the equation. Be sure to simplify your answers. Enter...

Basic Math
Q

Given quadrilateral RSTU, tell which sides (if any) are parallel and which are perpendicular for...

Basic Math
Q

tan 7 Round to seven decimal places as needed

Calculus
Q

Required information [The following information applies to the questions displayed below.] ADA Pharmaceutical Company produces...

Accounting
Q

Department S had no work in process at the beginning of the period. It added...

Accounting
Q

In the chapter on Capital Project Fund accounting, the textbook described the contruction of new...

Accounting